Tea prices drop amid political unrest

Tea prices in Bangladesh declined for the second straight week at a weekly auction on Tuesday due to sluggish local demand amid political unrest that disrupted supplies, reports Reuters.
 The country has been racked by political violence since anti-government protests turned violent last month over a disputed election a year ago.
More than 80 people have died and hundreds have been injured, most of them in firebomb attacks on vehicles, amid a violent nationwide transport blockade by the main opposition party aimed at toppling the government.
Demand from local buyers was tepid as political violence and uncertainties hurt business sentiment while tea volumes were also down this week as non-stop transport blockades disrupted supplies, an executive with National Brokers Ltd said.
Bangladeshi tea fetched an average Tk 187.28  ($2.40) per kg, compared with Tk 187.97  at the previous sale, he said.
About 1.70 million kg was offered at the sole auction centre in Chittagong, of which 37 percent remained unsold. In the previous auction, about 1.73 million kg was offered, with nearly 37 percent remaining unsold.
Tea production in Bangladesh rose 1.6 percent in 2013 to a record 63.5 million kg due to favourable weather but was still short of the domestic consumption of about 65 million kg.
The country has moved from being a net exporter to a net importer of tea because of rising consumption.
In April 2014, Bangladesh increased customs duty to 15 percent from 5 percent to discourage imports amid a drop in local prices due to ample supplies.

Following are the results of the latest tea auction. Figures are in Bangladesh taka per kg:
BROKENS
Medium Brokens- Tk 160- Tk 175
Small Brokens- Tk 180- Tk 190
Plain Brokens- Tk 100- Tk 110
FANNINGS
Best Fannings- Tk 200- Tk 210
Good Fannings- Tk 190- Tk 200
Medium Fannings- Tk 170- Tk 185
Plain Fannings- Tk 100- Tk 110
DUST
Red Dust- Tk 160- Tk 252
Dust- Tk 165- Tk 247
Churamoni Dust- Tk 175- Tk 257